The ProShares UltraPro QQQ ETF (TQQQ) is experiencing upward momentum as the Nasdaq 100 index benefits from a rebound in tech stocks, particularly Nvidia. Nvidia's shares rose over 4% in premarket trading on January 28, 2025, following a significant 17% drop the previous day. This recovery is attributed to investors reassessing the impact of Chinese AI startup DeepSeek's new model, which had initially triggered a massive selloff in tech stocks. The Nasdaq futures also gained about 0.7%, reflecting renewed investor confidence in the tech sector's resilience despite recent volatility.
The broader market sentiment is also buoyed by a decrease in the perceived probability of a U.S. recession, which has dropped to 27% according to recent assessments. This optimism is further supported by expectations that the Federal Reserve will maintain interest rates, providing a stable economic backdrop for growth-oriented sectors like technology. Additionally, upcoming earnings reports from major tech companies, including Microsoft and Apple, are anticipated to provide further insights into the sector's performance and potential recovery.
The TQQQ ETF is currently priced at $79.41, marking a 0.34% increase from its previous close.